Economists predict huge spending increase nationwide, possibly starting Memorial Day weekend

May 28, 2021, 8:09 PM | Updated: 8:12 pm
hispanic businesses immigrants growth...
Stock photo

SALT LAKE CITY — It’s not going to be a shake-up … it’ll be an earthquake.  That’s what economists are predicting will happen to consumer spending over the next several months. In particular, Utah’s leisure industry is expected to see a massive boost. 

Analysts with Wells Fargo said spending for some of the nation’s key industries has already recovered to pre-pandemic levels.  Managing Director Mark Vitner said they knew spending on other industries like leisure, hospitality and tourism would go back up after COVID-19 restrictions were lifted.  However, they said they didn’t know when this would happen.  Vitner said it appears we won’t have to wait much longer.

“We’re looking for spending to really pick up this weekend, as Memorial Day hits.  It’s just the time that everything seems to be clicking,” Vitner said.  “Really, it’s the suddenness that is so jarring.”

Their analysts expect we could see the equivalent of four years of spending growth crammed into the next nine to 12 months.  Vitner said Americans have a lot more money saved right now because they didn’t spend on things like travel, movies, entertainment and dining out during the pandemic.  Wells Fargo forecasts that spending could rise by $700 billion, nationwide, by the end of the year.

Vitner believes new recommendations from the Center for Disease Control and Prevention (CDC) for facemasks will make people more confident about being around others.  But at the same time, he said a lot of people still want to get away from the crowds.

“Even though folks are feeling more comfortable about getting out and about and being around other people, there still seems to be a real preference for doing things outdoors where you have some fresh air and a little more space,” Vitner said.

That means Utah’s tourism industry could cash in, big time.

“Utah is a top tourist destination and it’s the type of tourism that people really want right now,” he said.

It could take longer for Utah’s convention industry to make a recovery, since conventions take much longer to plan than quick trips.  However, Vitner believes that conventions may return to normal by the fall or winter.

Today’s Top Stories

All News

A rock squirrel at zion national park, they are the focus of fat squirrel week...
Becky Bruce and Samantha Herrera

Zion National Park announces Fat Squirrel Week… it might not be what you think

Fat Squirrel Week at Zion National Park aims to bring awareness about not feeding the local critters. The park says to pack out what you pack in.
10 hours ago
President Biden Delivers Remarks On Reducing Gun Crime...
Kaitlan Collins, Sam Fossum and Paul LeBlanc, CNN

Biden offers stark ‘Armageddon’ warning on the dangers of Putin’s nuclear threats

On Thursday, President Biden issued an Armageddon warning of Russia's continued threat to use nuclear weapons.
10 hours ago
A Now Hiring sign hangs in the window of Zupas in Salt Lake City on Wednesday, July 20, 2022. (Ben ...
PAUL WISEMAN AP Economics Writer

US hiring stayed solid in September as employers add 263,000

Some economists remain hopeful that despite the persistent inflation pressures, the Fed will still manage to achieve a so-called soft landing: Slowing growth enough to tame inflation, without going so far as to tip the economy into recession.
10 hours ago
People gather outside of a daycare center's scene of a mass shooting in the town of Uthai Sawan, 50...
Kocha Olarn, Hannah Ritchie and Heather Chen, CNN

Dozens of children among at least 36 people killed in childcare center massacre in Thailand

Children were among those killed in a shooting at childcare center in Thailand on Thursday. At least 36 people were killed.
10 hours ago
Dozens of people stage a demonstration to protest the death of a 22-year-old woman under custody in...
Oliver Darcy, CNN Business

A young woman’s death in Iran has sparked an uprising. News organizations are grappling with how to cover it

News organizations in the West are grappling with how to cover the uprisings in Iran over the death of a 22-year-old woman.
10 hours ago
Nichole Thomas, Pioneer Park Coalition member and Latter-day Brides owner, speaks during a Pioneer ...
Mark Jones

Pioneer Park Coalition announces plan to combat crime, homelessness

On Thursday, the Pioneer Park Coalition announced a three-pronged plan to combat homelessness and crime in Salt Lake City.
1 day ago

Sponsored Articles

Young woman receiving laser treatment...
Form Derm Spa

How facial plastic surgery and skincare are joining forces

Facial plastic surgery is not only about looking good but about feeling good too. The medical team at Form Spa are trained to help you reach your aesthetic outcomes through surgery and through skincare and dermatology, too.
large group of friends tohether in a park having fun...
BYU MBA at the Marriott School of Business

What differentiates BYU’s MBA program from other MBA programs

Commitment to service is at the heart of BYU’s MBA program, which makes it stand out among other MBA programs across the country.
a worker with a drill in an orange helmet installs a door in the house...
Price's Guaranteed Doors

Home improvement tip: Increase the value of your home by weatherproofing doors

Make sure your home is comfortable before the winter! Seasonal maintenance keeps your home up to date. Read our tips on weatherproofing doors.
Curb Appeal...
Price's Guaranteed Doors

How to have the best of both worlds for your house | Home security and curb appeal

Protect your home and improve its curb appeal with the latest security solutions like beautiful garage doors and increased security systems.
A paper reading IRS, internal revenue service is pictured...
Jordan Wilcox

The best strategies for dealing with IRS tax harassment | You have options!

Learn how to deal with IRS tax harassment. This guide will teach you how to stop IRS phone calls and letters, and how to handle an IRS audit.
spend a day at Bear Lake...
Bear Lake Convention and Visitors Bureau

You’ll love spending the day at Bear Lake | How to spend a day at Bear Lake

Bear Lake is a place that needs to be experienced. Spend a day at Bear Lake.
Economists predict huge spending increase nationwide, possibly starting Memorial Day weekend